EIM02770 - Employment income: incidental overnight expenses: example

An employee stays in a hotel for 3 nights as part of a business trip. Her employer reimburses the following personal expenses.

Night	Amount reimbursed
Night 1	£5.50
Night 2	£6
Night 3	£2.50
Total	£14

The reimbursement by the employer can be made tax-free under the incidental overnight expenses legislation. Although she was reimbursed more than £5 for each of the first 2 nights, the total reimbursement did not exceed £15 for the 3 nights, see EIM02730.